3 Human RelationsThe study of the behavior of individuals and groups in organizational settingsMotivationAn inner drive that directs a person’s behavior towards goalsFHF10-3

4 Motivating the WorkforceWhat motivates employees to perform?How can managers boost morale?How do you maximize worker performance?How can you encourage creativity and innovation?FHF10-4

5 The Basic Model of MotivationWhen a need exists, an individual engages in goal-directed behavior designed to satisfy that needFHF10-5

6 An employee’s attitude toward his or her job, employer and colleaguesMorale[]An employee’s attitude toward his or her job, employer and colleaguesMorale is a prominent aspect of human relationsFHF10-6

7 Morale (continued) High morale Low MoraleHigher productivity, returns to shareholders and worker productivityLow MoraleContributes to absenteeism, high employee turnover, and lack of commitmentA business always wants to seek out ways to improve employee moraleMorale (continued)FHF10-7

9 Daily MotivationMotivation is so important, iPhone even offers an app for itDaily Motivation offers inspiring quotes every dayFHF10-9

10 Most employees are motivated by more than pay...Compensation is sometimes not the best way to motivate employees– other benefits like flex schedules, and advancement opportunities are important motivators as wellSource: “Work-Life Balance Tops Pay,” USA Today, March 13, 2008, A1.Work/Life BalanceFHF10-10

11 Classic Theory of MotivationEarly 20th centuryTaylor & GilbrethScientific focus on work tasks & productivityMoneyThought to be the sole motivator for workersSatisfactory pay & job securityMotivate employees to work hardFHF10-11

12 Hawthorne Studies Elton Mayoat the Hawthorne Works PlantElton MayoPostulated that physical conditions in workplace stimulate productivityFindings show social and psychological factors influence productivity/moraleNot work conditionsMarks beginning of concern for human relations in the workplaceFHF10-12

13 Maslow’s Hierarchy of NeedsThis pyramid organizes needs into the order in which people seek to attain them, the most basic being on the bottom.FHF10-13

14 Maslow’s Hierarchy of NeedsPhysiological needsBasic needs for food, water, shelterSecurity needsProtection from physical & economic harmSocial needsNeed for love, companionshipEsteem needsSelf-respect and respect from othersSelf-actualizationMaximizing one’s full potentialMany people never achieve the higher order of needs, and people may slip from one category to the other depending on circumstances and times in their lives.FHF10-14

15 Herzberg’s Two-Factor TheoryHygiene factorsFocus on the work setting not the content of the workWages, working conditions, company policies, job securityMotivational factorsFocus on content of the work itselfAchievement, recognition, involvement, responsibility, advancementDeveloped in the 1950sHerzberg’s Theory focuses on the job and the evironment where work is doneFHF10-15

16 McGregor’s Theory X and Theory YTraditional viewAssumes that workers generally dislike work and must be forced to do their jobsTheory YHumanistic viewAssumes workers like to work and seek out responsibility to satisfy social, esteem, and self-actualization needsContrasts two different views of managementFHF10-16

17 Z TheoryA management philosophy that stresses employee participation in all aspects of company decision makingVariations on Theory ZParticipative ManagementEmployee InvolvementSelf-Directed Work Teams (SDWT)Developed by William OuichiHas spawned a number of other theoriesFHF10-17

18 Variations on Theory Z Quality circles5-8 people who meet to discuss ways to improve workParticipative management/ self-directed work teamsHigh level of employee controlMake employees responsible for outcomes of their decisionsVariations on Theory ZFHF10-18

19 Equity TheoryThe assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness (equity) of the rewards they will receive in exchangePerception that everyone is treated equallyEqual pay for equal workFHF10-19

20 Expectancy TheoryAssumes that motivation depends not only on how much a person wants something but also on how likely he or she is to get itSomeone who wants something and has a reasonable expectation to achieve it will be highly motivatedFHF10-20

21 Motivating Employees Behavior Modification FHFChanging behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itselfRewardPunishmentDeveloped by psychologist B.F. SkinnerBehavior that is rewarded will tend to be repeated– rewarding good behavior tends to be a more effective behavior modification strategy in the long termBehavior that is punished will tend to be eliminatedFHF10-21

22 Strategies for Motivating EmployeesJob rotationMovement of employees from one job to another to relieve the boredom often associated with job specializationDrawback is that is does not totally eliminate risk of boredomToyota practices job rotationWorkers change tasks every 2 hoursReduces repetitive stress injuries and mental fatigueClick on the hyperlink to go to Toyota’s Global websiteFHF10-22

23 Strategies for Motivating EmployeesJob enlargementAddition of more tasks to a job instead of treating each task as separateSeeks to counteract the boredom of division of laborMany small firms use job enlargementRequires training employees in new tasksFHF10-23

24 Strategies for Motivating Employees (continued)Job enrichmentIncorporating motivational factors (achievement, recognition, responsibility) into the jobIdea developed by Herzberg in the 50sGives employees feedback on their performanceRewards good performanceStrategies for Motivating Employees (continued)FHF10-24

25 Strategies for Motivating Employees (continued)Flexible scheduling strategiesFlextimeAllows employees to choose their start and end timesCompressed workweek40 hours in a 4-day workweekJob sharingOccurs when two people share the same jobStrategies for Motivating Employees (continued)FHF10-25

26 Motivation Fosters employee loyalty Boosts productivityInfluences on pay, promotion, job designNature of relationshipsNature of the job itselfCharacteristics of the organizationBMW keeps employee morale highOpen communication is importantKeep a sense of humor, even when times are toughClick on the hyperlink for an interview with Jim O’Donnell, President of BMW (Length: 4:23)He discusses the importance of open communication when seeking to keep employee morale high; importance of humorAlso discusses the company’s strategy for long-term customer retentionFHF10-26